EXPANSION EXPANSION AND AND OPERATIONS OPERATIONS A member of - - PowerPoint PPT Presentation

World Leader in Platinum Seminar 13 November 2001

EXPANSION EXPANSION AND AND OPERATIONS OPERATIONS

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

SAFETY

Intensive focus at all levels Zero tolerance target zero (“Otto”) initiatives in place Increasing mechanisation will enhance safety Focus on behavioral safety Safety is primary criterion in new mine design

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BUSINESS STRATEGY

Develop the market Expand into market growth Optimise value in current operations

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

ANGLO PLATINUM MINERAL RESOURCES

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

ANGLO PLATINUM MINERAL RESOURCES

Anglo Platinum’s access to multiple, high quality production sites (brown and greenfields) affords:

• expansion opportunities
• low cost replenishment of

current production base

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

MINERALS DEVELOPMENT BILL

Key mineral leases on the Eastern Limb secured via agreement with Government Security of tenure issues being effectively addressed by Anglo Platinum Sound relationship with government

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

ANGLO PLATINUM’S PRODUCTION 1930 - 2001

2500 Platinum '000 oz 2000 1500 1000 500 2001* 2000 1930 1950 1960 1970 1980 1990 1996 1998 1940

* Estimate A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

PLANNED EXPANSION

Total Platinum ounces

'000 oz 500 1000 1500 2000 2500 3000 3500

/ /

2006 1995 1996 1997 1998 1999 2000 2001 2002

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION PROJECTS

Steady state production Capex (unescalated) Pt oz (‘000s) per annum

2001 2001 2003 2004 2004 2003 2002 2003 2007 2006 2006 72 35 250 162 94 395

• 115

250 115 R0.24 bn R0.11 bn R1.20 bn R1.35 bn R0.45 bn R1.40 bn R1.45 bn R1.31 bn R0.57 bn R2.24 bn R2.70 bn Amandelbult UG2 Middelpunt Hill BRPM Maandagshoek Union UG2 RPM UG2 (incl.Waterval) Waterval Convertor (ACP) Ph 1 Pietersburg Smelter Pandora Joint Venture Styldrift Joint Venture Twickenham

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION - PROJECT SELECTION

All opportunities ranked via multiple criteria Earnings growth and shareholder return focus 12% real hurdle rate Safety health and environment criteria extremely important

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION - ISSUES

SKILLS PROVISION Remains our greatest challenge Current work force exceeds 40 000 13 000 new job opportunities Key issues, timeous & effective:

• skills identification
• recruitment
• training

Comprehensive Human Resource Development programme in place

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION - ISSUES

INFRASTRUCTURE Comprehensive infrastructure footprint being established - facilitates further resource development STAKEHOLDERS Appropriate accommodation of the interests

• f all stakeholders being comprehensively

addressed

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

ANGLO PLATINUM OPERATIONS

NORTHERN PROVINCE

Lydenburg Zeerust Rustenburg

NORTH WEST PROVINCE

Potgietersrust Witbank Warmbaths JOHANNESBURG

MPUMALANGA GAUTENG BOTSWANA WESTERN & EASTERN PLATS RPM AMANDELBULT

Republic

• f

South Africa

Bushveld Complex

TWICKENHAM PROJECT

PP RUST

NORTHAM

BAFOKENG

Others

LEBOWA RPM UNION RPM RUSTENBURG IMPALA

Existing Mines/ Expansion Projects Joint Venture

STYLDRIFT PROJECT

PRETORIA N

MAANDAGSHOEK JV PANDORA JV

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION: BRPM

Financial completion: 90% Physical completion: 90% Underground development build up affected by difficult geological conditions Plant performance excellent

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION: RPM / WATERVAL UG2

Financial completion: 40% Physical completion: 45% Shaft sinking on schedule East portal intersected reef Concentrator construction on schedule

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION: MAANDAGSHOEK

Financial completion: 20% Physical completion: 35% Shaft sinking on schedule - reef intersected Concentrator construction in progress Hill adits will alleviate authorisation delay

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

EXPANSION: OTHER

Union UG2

• Decline development commenced
• Plant contracts awarded

Pietersburg Smelter

• Design on schedule
• Commissioning in Q1 2003

Pandora JV design being finalised

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BUSINESS STRATEGY

Develop the market Expand into market growth Optimise value in current operations

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

ANGLO PLATINUM OPERATIONS

NORTHERN PROVINCE

Lydenburg Zeerust Rustenburg

NORTH WEST PROVINCE

Potgietersrust Witbank Warmbaths JOHANNESBURG

MPUMALANGA GAUTENG BOTSWANA WESTERN & EASTERN PLATS RPM AMANDELBULT

Republic

• f

South Africa

Bushveld Complex

TWICKENHAM PROJECT

PP RUST

NORTHAM

BAFOKENG

Others

LEBOWA RPM UNION RPM RUSTENBURG IMPALA

Existing Mines/ Expansion Projects Joint Venture

STYLDRIFT PROJECT

PRETORIA N

MAANDAGSHOEK JV PANDORA JV

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

CURRENT OPERATIONS

38 16 32 Rustenburg Union Amandelbult Bafokeng- 7 701 3 749 6 222 101 768 333 638 4 30 17 36

• 7 215

4 159 6 412 1 533 53.4 61.6 69.5

• 34

15 31 6 631 289 574 115 Rasimone Potgietersrust Lebowa 4 177 1 079 194 72 10 4 4 059 1 021 201 79 15 2 63.2 44.2 10 4

2000 1999

Op. Margin Op. Cont % Tons milled

• zs

Refined Pt Tons milled TOTAL 24 575 100 100 22 853 2 022 %

• zs

Refined Pt Mining Operation 1 871 100

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

CURRENT OPERATIONS - PROCESS

11 Concentrators situated adjacent to mining operations 2 Smelter complexes at RPM Waterval and Union 1 Base metals refinery 1 Precious metals refinery

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

VALUE OPTIMISATION

Choice of low cost sites for expansion or replacement / replenishment Breakthrough:

• Mining optimisation
• Concentrator optimisation
• Mechanisation

Cost control

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

REPLACEMENT / REPLENISHMENT PROJECTS

Continuous project evaluation includes current operations Value of deep Merensky is compared to shallow UG2 and Platreef for both brown and green field projects Lower grade, higher efficiency projects will be implemented and announced in due course Flexibility of expansion production sources is high

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH

Commenced in 1997 Substantial benefits over 1996 base Redefined in 2001 Four focus areas

• Mining Optimisation
• Mechanisation
• Concentrator Optimisation
• People Optimisation

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: MINING OPTIMISATION

Blast Frequency & Advance per blast Introduce best practice via a four step process

• Basic infrastructure
• Basic disciplines
• Team development
• Support services

Phased implementation in place

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: CONCENTRATOR OPTIMISATION

Optimal operational control of concentrators Merensky / UG2 blending and streams Basic control, expert systems and best practice

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: BENEFITS

The operating profit in 2002 will be R300 million higher as a direct result of the implementation of the mining optimisation and concentrator optimisation initiatives.

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: MECHANISATION

Research and development Application of research

• Operational trials
• Systems support
• Implementation

Mining methods, equipment used people skills

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: MECHANISATION

Drill rigs and bord and pillar methods are ready for selective, appropriate group implementation Current underground production from mechanised sources is 8% For 2002, 15% of underground tons milled will be from mechanised sources Risk management of implementation is in place

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

BREAKTHROUGH: MECHANISATION

Rockcutting Bord/Pillar Rocksplitting Drill/blast

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

PLANNED EXPANSION

Total Platinum ounces and tons milled

1996 1997 1998 1999 2002 2006 1995 2000 2001 500 1000 1500 2000 2500 5000 5500 '000 oz

/ /

tons m 60 30 10 20 40 50 3000 3500 4000 4500

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

COST PROFILE

Expansion : refined Pt ounces + 75% Expansion : tons milled +100% Increasing UG2 and mechanisation will tend to reduce average mined grade Ongoing focus on stores and labour costs Shallow more efficient new mines (expansion & replenishment) and Breakthrough initiatives will

• ffset grade reduction and other cost drivers

Focus on Rand / ton milled control Steady state and ramp up will be separately reported

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

GROWTH OUTLOOK

Solid fundamentals for PGM demand Expansions in place Value optimisation on-going

A member of the Anglo American plc group

World Leader in Platinum Seminar 13 November 2001

Anglo American Platinum Corporation Seminar: 13 November 2001

A member of the Anglo American plc group